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rosijanka [135]
3 years ago
15

Lakeside Components wishes to purchase parts in one month for sale in the next. On June 1, the company has 15,000 parts in stock

, although sales for June are estimated to total 13,600 parts. Total sales of parts are expected to be 10,500 in July and 12,700 in August. Parts are purchased at a wholesale price of $30. The supplier has a financing arrangement by which Lakeside Components pays 60 percent of the purchase price in the month when the parts are delivered and 40 percent in the following month. Lakeside purchased 14,000 parts in May. Required: a. Estimate purchases (in units) for June and July. b. Estimate the cash required to make purchases in June and July.
Business
1 answer:
Kryger [21]3 years ago
3 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

Beginning inventory (parts)= 15,000 parts

Sales June= 13,600

Sales July= 10,500

Sales August= 12,700

Parts are purchased at a wholesale price of $30.

Purchasing arrangement:

60 percent on the month of the purchase.

40 percent in the following month.

Lakeside purchased 14,000 parts in May.

A) To calculate the purchase for June and July, we need to use the following formula:

Purchases= sales + desired ending inventory - beginning inventory

June= 13,600 - 15,000= -1,400

July= 10,500 - 1,400= 9,100

B) Cash Required:

Purchase from the month

Purchase from the month before

<u>June:</u>

Purchase from the month= 0

Purchase from the month before= (14,000*30)*0.4= 168,000

<u>July:</u>

Purchase from the month= (9,100*30)*0.6= 163,800

Purchase from the month before= 0

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3 years ago
What quickbooks task stores information about customers, vendors, employees, services, and more?
Rufina [12.5K]

List QuickBooks task stores information about customers, vendors, employees, services, and more.

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8 0
1 year ago
Harris Company manufactures and sells a single product. A partially completed schedule of the company’s total costs and costs pe
irga5000 [103]

Answer:

1.                         67,000      87,000 107,000

Total costs:    

Variable costs 261,300     339.300 417.300

Fixed costs     360,000   360,000 360,000

Total costs    $621,300 $699,300 $777,300

Cost per unit:    

Variable costs      $3.9           $3.9          $3.9

Fixed costs           $5.37 $4.14            $3.36

Total cost      $9.27          $8.04          $7.26

2. Particulars                       Amount($)

Sales(97,000*8.08)        $783,760

Variable costs(97,000*3.9) $378,300

Contribution margin        $405,460

Fixed costs                        $360,000

Net operating income        $45,460

Explanation:

1.  The schedule of the company’s total costs and costs per unit would be as follows:

                       67,000      87,000 107,000

Total costs:    

Variable costs 261,300     339.300 417.300

Fixed costs     360,000   360,000 360,000

Total costs    $621,300 $699,300 $777,300

Cost per unit:    

Variable costs      $3.9           $3.9          $3.9

=(261300/67000)

Fixed costs           $5.37 $4.14            $3.36

=(360,000/67000)        =(360,000/87000)     =(360,000/107,000)

Total cost      $9.27          $8.04          $7.26

2. The contribution format income statement for the year would be as follows:

Particulars                       Amount($)

Sales(97,000*8.08)        $783,760

Variable costs(97,000*3.9) $378,300

Contribution margin        $405,460

Fixed costs                        $360,000

Net operating income        $45,460

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During the current month, Grey Company sold 60,000 units for $10 each. Each unit had an equivalent cost of $6 each. The journal
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Answer:

The sale entry would be:

Dr Trade Receivable  $ 600,000

Cr                     Sale            $600,000

And the inventory sent out of warehouse to customer would be recorded as:

Dr Cost of goods sold $360,000

Cr Finished Goods account  $360,000

Explanation:

As we know the sale is credit in nature and inventory sold on credit increases the trade receivable which is debit in nature.

So the entry would be:

Dr Trade Receivable  $ 600,000

Cr                     Sale            $600,000

And the inventory sent out of warehouse to customer would be recorded as:

The reason is that once the product is sold then the cost of finished goods is eliminated from the inventory account and would be charged to the cost of goods sold. So the entry would be posted by the cost of equivalent that the company has incurred to manufacture the product. Here the cost of equivalent is given and is $6 per unit.

So for the sale of 60,000 units the total cost of equivalent will be:

Total equivalent cost = 60,000 units * $6 per unit = $360,000

And the entry would be:

Dr Cost of goods sold $360,000

Cr Finished Goods account  $360,000

3 0
3 years ago
Walk Co’s average total assets are $200,000, net sales total to $100,000, and net income is $40,000. How much net income did Wal
kupik [55]

Answer:

$0.20 or 20 cents for every dollar invested as assets

Explanation:

To determine how many dollars (or cents) of net income did Walk Co. generate for every dollar of assets invested we have to;

divide Walk Co.'s net income by its total assets = $40,000 / $200,000 = $0.20 or 20 cents. This is called the

6 0
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